INCOME TAX ASSESSMENT ACT 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 855 - Capital gains and foreign residents  

Subdivision 855-A - Disregarding a capital gain or loss by foreign residents  

SECTION 855-15   855-15   When an asset is taxable Australian property  


There are 5 categories of *CGT assets that are taxable Australian property . They are set out in this table.


CGT assets that are taxable Australian property
Item Description
1 *Taxable Australian real property (see section 855-20)
2 A *CGT asset that:
(a) is an *indirect Australian real property interest (see section 855-25); and
(b) is not covered by item 5 of this table
3 A *CGT asset that:
(a) you have used at any time in carrying on a *business through:
(i) if you are a resident in a country that has entered into an *international tax agreement with Australia containing a *permanent establishment article - a permanent establishment (within the meaning of the relevant international tax agreement) in Australia; or
(ii) otherwise - a *permanent establishment in Australia; and
(b) is not covered by item 1, 2 or 5 of this table
4 An option or right to *acquire a *CGT asset covered by item 1, 2 or 3 of this table
5 A *CGT asset that is covered by subsection 104-165(3) (choosing to disregard a gain or loss on ceasing to be an Australian resident)

Note 1:

An asset is also taxable Australian property if it was acquired by a company after 28 January 1988 and before 26 May 1988 from a foreign resident as a result of a disposal for which there was a roll-over under section 160ZZN or 160ZZO of the Income Tax Assessment Act 1936 : see section 136-25 of the Income Tax (Transitional Provisions) Act 1997 .

Note 2:

Payments may need to be made to the Commissioner for acquisitions of some kinds of taxable Australian property if foreign residents are involved (see Subdivision 14-D in Schedule 1 to the Taxation Administration Act 1953 ).


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